In the campaign for the renovation of the Academy’s Dining Hall which started in the summer of 2023, Head of School John Austin described the Dining Hall as the “heart and soul of our campus.” The renovation is meant to expand to fit the entire student body in the sitdown meal program, improve the way in which meals are served, and update the building structure while still maintaining the architectural consistency of campus.
To finance the new Dining Hall, Deerfield has sold an $89 million bond. Chief Financial Officer Matthew Sheehy explained how this was brought about, saying, “Investors give us their resources, and in return, we commit to paying that back over a period of time.”
On August 15, Deerfield’s Board of Trustees filed documents to the Massachusetts Development Finance Agency to issue the bonds. “As a not for profit [institution], if we choose to access the tax exempt bond market, we have to work with the Massachusetts Development Financing Agency,” said Mr. Sheehy. “They sponsor us in issuing these bonds.”
Two days later, on August 17, Bloomberg News reported this story in an article that has since Dining Hall Financing SOPHIA GAO Associate Editor gone viral on social media platforms including Instagram and TikTok. One Instagram Reel, by the account @morningbrew, currently has over 417,000 views. The short clip by @morningbrew saying, “Apparently, perfecting this experience is worth taking out $89 million in debt,” followed by a “bruh” in the background.
Mr. Sheehy emphasized that the author of the Bloomberg article did not give Deerfield a fair opportunity to represent itself. “There were no Deerfield quotes,” he highlighted. Chief Advancement Officer Chuck Ramsay shared this sentiment of misrepresentation, saying, “The TikTok video and the Bloomberg article were created by people who have no understanding of Deerfield’s values, our sense of community, and school spirit.”
According to Mr. Sheehy, a municipal bond was the best way to finance the new Dining Hall, especially considering that it would also support other construction projects including upgrading the tennis pavilion and building a multisport complex. “We envisioned the [Dining Hall] project starting a year ago,” he said, adding that “construction projects were getting more expensive.” Mr. Sheehy explained that borrowing money allowed work to begin before construction prices increased even further, creating a bridge toward alumni future donations to support the renovation.
He then elaborated that borrowing was preferable to taking money directly out of the endowment. “The market was favorable to borrow this money,” he said. “Rather than take resources out of the endowment, having the ability to borrow the money with a roughly 3% interest rate was very favorable.”
In addition to the increasing construction costs generally, the Dining Hall was built in 1948, further complicating the process, according to Mr. Sheehy. The new Dining Hall will need to adhere to a more modern building code, adding complexity and cost to the site, which will need to accommodate the entire student body.
Along with the financing of the renovated Dining Hall comes the construction of the temporary one on the Head Master’s Field. The structure contains an elevated area with the main dining space and lobby, and is accompanied by modular units. These units are used for the kitchen space, loading dock, food storage, and food preparation areas. Ultimately, it will appear as a new structure on campus.
Like in the renovated Dining Hall, the temporary Dining Hall will have space to fit everyone in the sitdown meal program to encourage continuity of experience. However, Mr. Sheehy shared that the Parker Room will not be a part of the temporary or renovated Dining Halls, but there will be dining space for staff.
Essentially, Mr. Sheehy said, “We’re not spending $89 million to build a Dining Hall…I think that’s one of the things that’s a grand misnomer.” He addressed that there are five or six peer schools that are also working on Dining Hall projects, whether that be renovating or building a new structure, and shared that their projects are around the same price range.
With that, the Academy has made the Dining Hall a fundraising focus and opportunity for alumni, family, and friends. The Office of Advancement is working on “raising philanthropic support for institutional priorities, including the new Dining Hall,” according to Mr. Ramsay, as Deerfield will need to pay back the bond. In regards to alumni, he said, “Our alumni have fond memories of sitdown meals at Deerfield and understand our investment in the project.”